Stellar (XLM) in January 2026: Technical signals indicate recovery chances

The latest data shows that Stellar (XLM) is currently trading at $0.23, presenting an interesting entry point for opportunistic traders. With a 7-day performance of -1.83% and a 24-hour volume of only $2.05M, a consolidation phase may be coming to an end – perfect for those looking to buy strategically.

What is XLM’s current technical position?

The technical situation of Stellar is currently mixed. The RSI value of 36.43 signals neutral conditions but is approaching oversold territory – often a trigger for counter-movements. The positive MACD histogram (0.0002) indicates that selling pressure is easing and bullish impulses could emerge.

Particularly interesting is the positioning within the Bollinger Bands. With a %B indicator of 0.1375, XLM is near the lower support band. Such extreme positions typically lead to mean-reversion movements – possibly toward the middle band at $0.22.

The stochastic indicators (%K: 22.74; %D: 21.63) confirm oversold conditions without reaching extreme territory. This creates room for organic upward momentum.

Realistic scenario: Where could it go?

In the optimistic case, XLM stabilizes initially at the critical support of $0.20 and then gradually moves upward. The first target would be the 20-day SMA at $0.22 – a realistic scenario for the next 7 days. Afterwards, the rally could extend to the 50-day SMA at $0.24, representing a gain of about 10-20%.

A breakthrough above $0.24 would unlock further upside potential, possibly up to $0.30. However, higher trading volume and an RSI above 50 are needed for that – both factors currently missing.

The risk scenario is quickly summarized: if support at $0.20 breaks, a test of the 52-week lows is imminent. Even worse: a break below $0.20 could trigger psychological selling pressure toward $0.15-$0.18.

Trading with caution: How to proceed

For those looking to enter here deliberately, a structured approach is recommended:

Entry zones:

  • Primary: $0.20-$0.205 (current support cluster)
  • Use dollar-cost averaging on weakness

Protection:

  • Stop-loss: $0.195 (below the key support, about 2.5% risk)

Profit targets in stages:

  • First target: $0.22 (SMA 20)
  • Extended target: $0.24 (SMA 50)

Important: Position sizes should remain conservative. Given proximity to 52-week lows and the overall neutral trend, this is not the moment for aggressive positions. Those wanting to buy degen should avoid sizing up and instead buy multiple times at support levels.

What to watch for confirmation?

Before turning truly bullish, the following indicators should give the green light:

  • RSI above 40: indicating increasing momentum
  • MACD crossover: the signal line should be crossed from below
  • Volume expansion: upward moves above $0.21 should be accompanied by higher volume

Conclusion: Wait for confirmation

The current setup for Stellar suggests a potential recovery scenario – $0.22-$0.24 in 1-2 weeks is a realistic target. However, with moderate confidence: the neutral trend and lack of volume support call for caution.

The main risk remains a break of the $0.20 support. If that happens, a complete reevaluation of the setup is necessary, and the next support zones must be reassessed.

Data basis: Technical analysis from January 15, 2026 | Source: Shutterstock

XLM4,65%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
  • Pin

Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)